factual

What must a My Salon Suite franchisee do before leasing or purchasing a site for the Franchised Business?

My_Salon_Suite Franchise · 2025 FDD

Answer from 2025 FDD Document

the location for the Franchised Business. If we do not provide our specific approval of a proposed site, the site is deemed not approved. Our approval only means that the site meets our minimum requirements for a Franchised Business. Before you lease or purchase the site for the Franchised Business, you must locate a site that satisfies our site selection guidelines (Sections 7.A through 7.E of the Franchise Agreement). If we determine that an on- site evaluation is necessary, then you must: (i) submit to us in the form we specify a description of the site prior to our representative conducting its on-site evaluation, including evidence that the site satisfies our site selection guidelines, together with other information and materials that we may reasonably require, including a letter of intent or other evidence that confirms your favorable prospects for obtaining the site; and (ii) reimburse us for the expenses incurred in connection with such an evaluation. This does not apply to a Conversion Franchise.

We may terminate your Franchise Agreement if: (i) you do not propose at least one (1) location for your Franchised Business within six (6) months of executing your Franchise Agreement; or (ii) you are unable to locate and obtain a suitable location and Approved Location (including signing a lease for that location) within nine (9) months after you sign the Franchise Agreement (Sections 7.A to 7.E of the Franchise Agreement).

If you are granted the right to develop more than one (1) Franchised Businesses pursuant to the Development Agreement, then we will approve the location of future units and the thencurrent standards for sites will apply.

Lease – New Locations

We must approve any lease for the Approved Location before you enter into such an agreement. We may condition our approval on a number of conditions, including: (i) an agreement by you and the landlord of the Approved Location to enter into our prescribed form of collateral assignment of lease and our then-current form of lease addendum (if any); and (ii) receiving a written representation from the landlord of the Approved Location that you will have the right to operate the Franchised Business, including subleasing/renting certain portions of the Approved Location to different third-party salon professionals, throughout the term of your Franchise Agreement (Section 12.S. of the Franchise Agreement). You will also be required to provide to us computer-aided design ("CAD") and Portable Document Format ("PDF") files from the architect or contractor regarding the build-out of the Approved Location.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 42–53)

What This Means (2025 FDD)

According to My Salon Suite's 2025 Franchise Disclosure Document, before a franchisee can lease or purchase a site for their Franchised Business, they must first locate a site that adheres to My Salon Suite's site selection guidelines. These guidelines necessitate that the franchisee conduct an evaluation of the demographics in the market area of the proposed location, at their own expense.

My Salon Suite may utilize these demographic factors to determine if the proposed site is suitable for the Franchised Business. In deciding whether to approve a site, My Salon Suite may also consider demographic characteristics, traffic patterns, allowed design and building, parking, visibility, allowed signage, the predominant character of the neighborhood surrounding the proposed site, competition from other businesses selling similar products and services within the area, and the proximity of the site to these businesses, as well as the nature of all other businesses in proximity to the site, zoning restrictions, soil and environmental issues, and other commercial characteristics, and the size, appearance, and other physical characteristics of the proposed site.

Furthermore, My Salon Suite must approve any lease for the Approved Location before the franchisee enters into such an agreement. My Salon Suite may condition its approval on an agreement by the franchisee and the landlord of the Approved Location to enter into their prescribed form of collateral assignment of lease and their then-current form of lease addendum (if any), and receiving a written representation from the landlord of the Approved Location that the franchisee will have the right to operate the Franchised Business, including subleasing/renting certain portions of the Approved Location to different third-party salon professionals, throughout the term of the Franchise Agreement. The franchisee will also be required to provide to My Salon Suite computer-aided design and Portable Document Format files from the architect or contractor regarding the build-out of the Approved Location.

If the franchisee plans to purchase the building where the Approved Location for their Franchised Business will be, then the landlord entity that owns the building must be a separate entity from the franchisee entity. My Salon Suite must approve the lease that the franchisee uses in connection with the Franchised Business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.